Why Using Your Insurance for Therapy May Cost More Than Private Pay (and How to Opt Out)

When starting therapy, many people assume that using their health insurance is always the most affordable option. Surprisingly, that isn’t always true. In some cases, private pay, CareCredit financing, or out-of-network benefits using services like Thrizer can actually cost less overall—and offer more flexibility—than using insurance.

At Therapy Haven and Consulting LLC, we are in-network with several insurance companies. We believe in transparency and client choice, so this post is designed to help you understand why insurance can sometimes be more expensive and how you can decide what option is best for you.

Why Using Insurance Can Sometimes Cost More

1. Deductibles and High Out-of-Pocket Costs

Many insurance plans come with high deductibles. Until that deductible is met, you may be paying the full contracted insurance rate, which can be higher than a therapist’s private-pay rate. Even after meeting your deductible, co-pays and coinsurance can add up quickly.

2. Insurance Rates Are Often Inflated

Insurance companies set reimbursement rates—not therapists. These rates are often higher than private-pay rates and don’t always reflect the actual cost of care. As a result, clients may pay more out of pocket through insurance than they would by paying privately.

3. Limited Session Length and Treatment Restrictions

Insurance may require:

• A mental health diagnosis
• Medical necessity documentation
• Limits on session frequency or duration

These requirements can restrict the type, pace, or length of care you receive, sometimes leading to less personalized treatment or longer overall treatment timelines.

4. Your Mental Health Record Becomes Permanent

When you use insurance, a diagnosis becomes part of your medical record. While this is necessary for insurance billing, some clients prefer the privacy and discretion of private pay, especially for career, life-transition, or relationship-focused therapy.

Why Private Pay Can Be a More Affordable (and Flexible) Option

Transparent Pricing

With private pay, you know exactly what you are paying—no surprise bills, explanations of benefits, or fluctuating costs.

Greater Clinical Flexibility

Private pay allows your therapist to:

• Customize session length and frequency
• Focus on growth, prevention, and life transitions
• Adjust care without insurance-imposed limitations

Often Lower Total Cost

When you factor in deductibles, co-pays, and coinsurance, private pay can be less expensive over time, even if the per-session rate looks higher at first glance.

Using CareCredit Financing for Therapy

For clients who want predictable monthly payments, CareCredit offers a healthcare financing option that can make therapy more accessible.

Benefits include:

• Flexible payment plans
• Potential interest-free promotional periods (depending on eligibility)
• Ability to spread the cost of care over time

CareCredit can be especially helpful if you want private-pay therapy without the immediate financial strain of paying per session.

Using Out-of-Network Benefits with Thrizer

If your insurance plan includes out-of-network benefits, Thrizer can help make private pay more affordable.

How Thrizer Helps

Thrizer acts as a billing support service that:

• Submits out-of-network claims on your behalf
• Estimates your reimbursement upfront
• Allows you to pay only your estimated portion at the time of service

In many cases, clients using Thrizer end up paying less than their in-network cost, especially when deductibles or high co-insurance apply.

How to Opt Out of Using Insurance

Even if we are in-network with your insurance company, you typically have the right to choose private pay.

Here’s how it works:

1. Let us know you’d like to use private pay instead of insurance
2. We’ll review your options (private pay, CareCredit, or Thrizer)
3. You’ll sign a brief opt-out or private-pay agreement
4. Your sessions will not be billed to insurance

We are happy to walk you through this process so you can make an informed, confident decision.

Choosing the Best Option for You

There is no one-size-fits-all answer. The “best” option depends on:

• Your insurance plan details
• Your deductible and co-insurance
• Your financial preferences
• Your desire for flexibility and privacy

At Therapy Haven and Consulting LLC, our goal is to ensure that cost is clear, predictable, and aligned with your needs not a barrier to care.

If you’d like help comparing your insurance benefits with private pay, CareCredit, or Thrizer, we’re happy to assist.

Your mental health care should work for you clinically and financially.

Disclaimer: This blog is for informational purposes only and is not insurance or financial advice. Coverage and reimbursement vary by plan.